Team Members :
1. Nursyiqah binti Jasman AE09015
2. Norafitah binti Mahidin AE09027
3. Lu Chee Suan AE09033
Course/ section: BAE / A03
Title of report proposal : Unfinished Construction
Date of submission : 29th JULY 2010
1.0 INTRODUCTION
. 1.1 Background of the proposed report
The construction industry is large, volatile, and requires tremendous capital outlays. A manner in which disputes and claims are woven through the fiber of the construction process. There has been a considerable and continued interest on the effects of unfinished construction. The information available is diverse and widespread. As defined in developed counties (Hillebrandt, 1985), construction is considered unique in that it can stimulate the growth of other industrial sectors. Hence to consider growth of the construction industry in terms of its contribution to GDP in isolation is somewhat misleading that is, to do so understates the crucial role played by construction. Therefore, improving construction efficiency by means of cost and time effectiveness were associated with managing time and cost, which in study was approached via investigating causes of delay at construction projects. Despite the necessity for such research, little work has been described in the literature concerning public projects. The previously proposed factors contributing to unfinished construction were frequently observed in public projects. The actual frequency and magnitude of these factors is not known, which has proven to be a serious and very expensive problem for the construction industry. The main objective of this study is to identify the main causes of unfinished construction in construction projects through a survey and recommend few procedures to avoid it.
1.2 Objective(s) of the study
The purposes of this study are as follow :
- To determine the factors of the incident of the unfinished construction.
- To understand the effects of the unfinished construction.
1.3 Research questions
The main research questions of this study are as follow :
- What is the factor that cause the unfinished construction?
- What is the effect if the construction not being finished?
2.0 LITERATURE REVIEW
Unfinished construction is one of the biggest problems construction firms’ face that has the tendency to lead many negative effects such as lawsuits between owners and contractors, increased costs loss of productivity and revenue, and contract termination. Thus, comprehensive study on these unfinished constructions is essential. They found that the six effects of construction delay were: time overrun, cost overrun, dispute, arbitration and litigation and total abandonment. Delay in the delivery of materials and equipment to construction sites is often a contributory cause to cost overruns in construction projects in developing countries. However, the actual impact of these delays on project costs was found to be on average, only about 0.5% of the total budgeted cost of the projects. The construction sector in Malaysia, a fast developing country in South-East Asia has not escaped the problem of delays. In 2005, about 17.3% (of 417 government contract projects in Malaysia) were considered sick (more than 3 months of delay or abandoned).
There are some factors related to unfinished construction. According to Mansfield (c.f M. Sambasivan, Y.W. Soon / International Journal of Project Management 25 (2007) 517–526) identified factors that caused unfinished construction and cost overruns in Nigeria. They presented that the causes of unfinished construction and cost overruns in Nigerian construction projects were attributed to finance and payment arrangements, poor contract management, shortages in materials, inaccurate estimation, and overall price fluctuations. However, the owners agreed that the design errors, labor shortages and inadequate labor skills were important in unfinished construction factors. According to Chan and Kumaraswamy (c.f M. Sambasivan, Y.W. Soon / International Journal of Project Management 25 (2007) 517–526) conducted a survey to determine and evaluate the relative importance of the significant factors causing unfinished construction in Hong Kong construction projects. They analyzed and ranked main reasons for delays and classified them into two groups: (a) the role of the parties in the local construction industry (i.e. whether client, consultants or contractors) and (b) the type of projects. Results indicated that five major causes of delays were: poor site management and supervision, unforeseen ground conditions, low speed of decision making involving all project teams, client initiated variations and necessary variations of works. Extraneous causes of unfinished construction identified were: inclement weather, acts of nature, labor disputes and strikes. According to Frimpong et. al., (c.f M. Sambasivan, Y.W. Soon / International Journal of Project Management 25 (2007) 517–526) conducted a survey to identify and evaluate the relative importance of significant factors contributing to unfinished construction and cost overruns in Ghana groundwater construction projects. The result of the study revealed the main causes of unfinished construction and cost overruns in construction of groundwater projects: monthly payment difficulties from agencies; poor contractor management; material procurement; poor technical performance; and escalation of material prices.
Beside that, some factors cause the unfinished construction; such as human behavior, financial problem, and construction. In the human behavior aspect, the consultant always is the causes the unfinished construction. Sometimes, there are change order and late issuance of construction drawing. The contractor also can be the issue because of the incapability of contractor's site management to organize site activities also can be one of the unfinished construction. If there is coordination problem between contractor and subcontractor, it will pose hindrance to the work progress. In financial aspect, it shown that the suppliers do not get the payment. It will cause the stoppage of the material delivery to the site. When the contractor does not get the payment, the work progress will be hindrance. If a company does not have money to buy or hire the equipments, it will slow the work progress. This is because major idle time since employed working is unable to progress their work due to material transportation problem. In the construction aspect, the material shortage at the project site is the most critical factor causing unfinished construction. It will make the workers often idle while waiting for materials. According to Lim and Alum, 1995 (c.f M.R. Abdul Kadir, W.P. Lee, M.S. Jaafar, S.M. Sapuan and A.A.A. Aliit) was also ranked eighth in Singapore construction productivity problems. Moreover, the lack of the steel in our construction industry Malaysia will make the late supply of materials in the market. It also can be the factor of unfinished construction.
3.0 DATA COLLECTION METHOD
1. The scope of this study is based on our course that is civil engineering that will be conduct in Universiti Malaysia Pahang (UMP).
2. The number of participants are about 30 people among University Malaysia Pahang students.
3. During this survey, the questionnaire is one of the data collection instrument needed.
4.0 DIVISION OF WORKLOAD
TASK
NAME
DURATION
Search for information and relevant article
Lu Chee Suan, Norafitah,Nursyiqah
week 1 19/7/2010
WRITE PROPOSAL
introduction, objective, research questions, literature review, data collection method, division of workload.
Lu Chee Suan, Norafitah,Nursyiqah
Week 2
Prepare final proposal
Lu Chee Suan, Norafitah,Nursyiqah
Week 3
Review relevant article during library visit
Lu Chee Suan, Norafitah,Nursyiqah
Week1
Synthesis information from the list
Week 2
WRITE LITERATURE REVIEW -factors -factors -effects
Lu Chee Suan, Norafitah,Nursyiqah
Week 4
Design data collection instruments
Norafitah
Week 5
Analyze the data collection instruments
Lu Chee suan
Week 5
Write the introduction, literature review & methodology
1. Nursyiqah binti Jasman AE09015
2. Norafitah binti Mahidin AE09027
3. Lu Chee Suan AE09033
Course/ section: BAE / A03
Title of report proposal : Unfinished Construction
Date of submission : 29th JULY 2010
1.0 INTRODUCTION
.
1.1 Background of the proposed report
The construction industry is large, volatile, and requires tremendous capital outlays. A manner in which disputes and claims are woven through the fiber of the construction process. There has been a considerable and continued interest on the effects of unfinished construction. The information available is diverse and widespread. As defined in developed counties (Hillebrandt, 1985), construction is considered unique in that it can stimulate the growth of other industrial sectors. Hence to consider growth of the construction industry in terms of its contribution to GDP in isolation is somewhat misleading that is, to do so understates the crucial role played by construction. Therefore, improving construction efficiency by means of cost and time effectiveness were associated with managing time and cost, which in study was approached via investigating causes of delay at construction projects. Despite the necessity for such research, little work has been described in the literature concerning public projects. The previously proposed factors contributing to unfinished construction were frequently observed in public projects. The actual frequency and magnitude of these factors is not known, which has proven to be a serious and very expensive problem for the construction industry. The main objective of this study is to identify the main causes of unfinished construction in construction projects through a survey and recommend few procedures to avoid it.
1.2 Objective(s) of the study
The purposes of this study are as follow :
- To determine the factors of the incident of the unfinished construction.
- To understand the effects of the unfinished construction.
1.3 Research questions
The main research questions of this study are as follow :
- What is the factor that cause the unfinished construction?
- What is the effect if the construction not being finished?
2.0 LITERATURE REVIEW
Unfinished construction is one of the biggest problems construction firms’ face that has the tendency to lead many negative effects such as lawsuits between owners and contractors, increased costs loss of productivity and revenue, and contract termination. Thus, comprehensive study on these unfinished constructions is essential. They found that the six effects of construction delay were: time overrun, cost overrun, dispute, arbitration and litigation and total abandonment. Delay in the delivery of materials and equipment to construction sites is often a contributory cause to cost overruns in construction projects in developing countries. However, the actual impact of these delays on project costs was found to be on average, only about 0.5% of the total budgeted cost of the projects. The construction sector in Malaysia, a fast developing country in South-East Asia has not escaped the problem of delays. In 2005, about 17.3% (of 417 government contract projects in Malaysia) were considered sick (more than 3 months of delay or abandoned).
There are some factors related to unfinished construction. According to Mansfield (c.f M. Sambasivan, Y.W. Soon / International Journal of Project Management 25 (2007) 517–526) identified factors that caused unfinished construction and cost overruns in Nigeria. They presented that the causes of unfinished construction and cost overruns in Nigerian construction projects were attributed to finance and payment arrangements, poor contract management, shortages in materials, inaccurate estimation, and overall price fluctuations. However, the owners agreed that the design errors, labor shortages and inadequate labor skills were important in unfinished construction factors. According to Chan and Kumaraswamy (c.f M. Sambasivan, Y.W. Soon / International Journal of Project Management 25 (2007) 517–526) conducted a survey to determine and evaluate the relative importance of the significant factors causing unfinished construction in Hong Kong construction projects. They analyzed and ranked main reasons for delays and classified them into two groups: (a) the role of the parties in the local construction industry (i.e. whether client, consultants or contractors) and (b) the type of projects. Results indicated that five major causes of delays were: poor site management and supervision, unforeseen ground conditions, low speed of decision making involving all project teams, client initiated variations and necessary variations of works. Extraneous causes of unfinished construction identified were: inclement weather, acts of nature, labor disputes and strikes. According to Frimpong et. al., (c.f M. Sambasivan, Y.W. Soon / International Journal of Project Management 25 (2007) 517–526) conducted a survey to identify and evaluate the relative importance of significant factors contributing to unfinished construction and cost overruns in Ghana groundwater construction projects. The result of the study revealed the main causes of unfinished construction and cost overruns in construction of groundwater projects: monthly payment difficulties from agencies; poor contractor management; material procurement; poor technical performance; and escalation of material prices.
Beside that, some factors cause the unfinished construction; such as human behavior, financial problem, and construction. In the human behavior aspect, the consultant always is the causes the unfinished construction. Sometimes, there are change order and late issuance of construction drawing. The contractor also can be the issue because of the incapability of contractor's site management to organize site activities also can be one of the unfinished construction. If there is coordination problem between contractor and subcontractor, it will pose hindrance to the work progress. In financial aspect, it shown that the suppliers do not get the payment. It will cause the stoppage of the material delivery to the site. When the contractor does not get the payment, the work progress will be hindrance. If a company does not have money to buy or hire the equipments, it will slow the work progress. This is because major idle time since employed working is unable to progress their work due to material transportation problem. In the construction aspect, the material shortage at the project site is the most critical factor causing unfinished construction. It will make the workers often idle while waiting for materials. According to Lim and Alum, 1995 (c.f M.R. Abdul Kadir, W.P. Lee, M.S. Jaafar, S.M. Sapuan and A.A.A. Aliit) was also ranked eighth in Singapore construction productivity problems. Moreover, the lack of the steel in our construction industry Malaysia will make the late supply of materials in the market. It also can be the factor of unfinished construction.
3.0 DATA COLLECTION METHOD
1. The scope of this study is based on our course that is civil engineering that will be conduct in Universiti Malaysia Pahang (UMP).
2. The number of participants are about 30 people among University Malaysia Pahang students.
3. During this survey, the questionnaire is one of the data collection instrument needed.
4.0 DIVISION OF WORKLOAD
introduction, objective, research questions, literature review, data collection method, division of workload.
-factors
-factors
-effects
20-22/7/2010